These files replicate the results presented in the appendix. 

Figure1.do replicates Figure 1 in the appendix. The file first produces the simulation results, drawing on other do-files, and then produces Figure 1. 

Application.do replicates Tables 1 and 2 in the appendix, using the replication data provided by Flores-Macias and Kreps (2013). 

Version and package information:
The simulations and replication were implemented in Stata SE 14.2. If using a Stata version other than SE, the code may have to be adjusted for the matsize limit. The tables for the application are created using the estout command (if not installed already, type "ssc install estout").